MOVING FAMILIES TOWARD ECONOMIC INDEPENDENCEEmily Feinberg, ScD, CPNP

Sara Donahue, MPH, DrPH(c)

Instructional Innovation Conference

March 25, 2011

OVERVIEW Innovation purpose Moving Families Toward Economic

Independence exercise Application to other courses Questions

INNOVATION PURPOSE

CONTEXT Course: Women, Children and Adolescents:

Public Health Approaches Class session: Poverty and Family Self-

Sufficiency: Understanding Social Indicators Need: Younger students may lack experience

in examining social indicators or an understanding of poverty/low income status

POVERTY INDICATORS Poverty thresholds

Indicator of overall economic well-being Determine eligibility for public programs

Family/individual level Community/school district level

Federal Poverty Level (FPL) used as eligibility criteria for numerous programs serving the maternal and child health population

Economic Independence Index (EII): alternate measure describing income adequacy and economic self-sufficiency

INNOVATION: MOVING FAMILIES TOWARD ECONOMIC INDEPENDENCE EXERCISE In-class computer simulation exercise Objectives

Improve understanding of a major social indicator, the federal poverty measure, and its application

Recognize the relationship between poverty levels and a family’s ability to meet basic needs

Evaluate the impact of participation in public programs in families’ efforts to attain income independence

MOVING FAMILIES TOWARD ECONOMIC INDEPENDENCE EXERCISE

BACKGROUND

ECONOMIC INDEPENDENCE

How much income is needed for a family of a certain composition in a given place to adequately meet their basic needs-without public or private assistance

Personal & Household Needs; 8%

Child Care; 31%

Trans-portation,

4%

Food; 11%

Utilities; 4%

Housing; 18%

Taxes (net); 16%

Health care; 8%

Breakdown of Economic Independence Index 2010, Single parent with Preschooler and

School-Age Child, Massachusetts

FEDERAL POVERTY LEVEL VS. ECONOMIC INDEPENDENCE INDEX

$22,050 $67,74

9

Federal poverty line for a family of 4

Real costs for family of 4 living in Boston

EXERCISE COMPONENTS

FAMILY ASSIGNMENT AND ACTIVITY STRUCTURE In-class computer exercise, students work in pairs or

groups of 3 Each group is assigned a unique family structure

One or two parents and two children of varying ages Hourly wage of $8, $11, or $18 Health insurance status: private paying 30% of premium,

private paying 50% of premium, uninsured Students can determine other characteristics of their

family Materials:

Students use personal computers to complete calculations and access websites

Students are given a packet of materials with website links and program eligibility guidelines

ACTIVITY 1: CALCULATE EII Goal: Understand the relationship between

the Economic Independence Index and the FPL

Output For an example family of three:

1. Current income if earning $11/hour: $23,2322. Income if self-sufficient: $65,238 (36% EII)3. FPL: $18,310 (127% FPL)4. Difference between current income and income

required to be economically self-sufficient: $42,006

ACTIVITY 2: DEVELOP AN ECONOMIC INDEPENDENCE STRATEGY Goal: develop a strategy to help the family

move toward economic independence Key assumptions

All programs accessible Health insurance and tax liability requirements Childcare needs

Steps and considerations Use family characteristics and program websites

to select a strategy; document approach Struggle with balancing family needs with

realities of public program restrictions

EXERCISE 3: EVALUATE APPROACH Assess impact of strategy on hourly wage

needed to be self-sufficient Evaluate economic independence Consider feasibility of approach in current

environment

DEBRIEFING Students reflect on their experiences in a

class discussion facilitated by the class instructor

Instructor role Encourage students to share their reflections on

the simulation experience, to discuss experiences that were difficult or frustrating

Provide details on programs as they are discussed, including review of the reality of program and service availability

EXAMPLE FAMILY

THE COLVINS Mary earns $11/hour at CVS and lives with her

two children in Dorchester

Yearly FPL EII %FPL %EII

Self-sufficient income

$65,238 $18,310 $65,238 356% 100%

Income now $18,304 $18,310 $65,238 100% 28%

MARY’S STRATEGY

Monthly expenses Cost Value of supportNew cost with support/subsidy

Housing & Utilities $1,345 $581 (subsidy) $788

Food $533 $90 (WIC) $443

Transportation $59 $59

Child care $1,790 $1,295 (subsidized care) $495

Personal & household needs $434 $434

Health care $412 $412 (MassHealth) $0

Taxes $1,130 $1,130

Tax credit -$267 $863 (Child tax credit) -$1,130

Total $5,436 $3,325 $2,096

% EII, Original expenses

% EII, New expenses

28% 78%

STUDENT REACTIONS

“It’s so hard to navigate the system!” Eligible for some programs, not others Literacy level required for program websites

“Child care is really expensive.” Surprise at the costs of certain budget items

APPLICATION TO OTHER COURSES AND STUDENTS

APPLICATION TO OTHER COURSES Use

Help explain the role of public programs for low income families

Clarify the concept of economic self-sufficiency Support in-depth analyses of the implications of life

events on families’ economic status and access to public programs

Audiences Medical students Advanced graduate students in public health or social

work Students less experienced in public programs and

policies Students in courses that examine the impact of poverty

from a more theoretical perspective

SUMMARY

KEY BENEFITS Improves students’ understanding of

economic self-sufficiency and poverty measures

Engages and challenges students to think creatively and develop their own solutions while communicating important information and concepts

Offers flexibility for a range of audiences and educational goals

QUESTIONS

MOLLIE ORSHANSKY

FEDERAL POVERTY GUIDELINES 2010

Federal Register, Vol. 75, No. 148, August 3, 2010

Persons in family Poverty guideline

1 $10,830

2 $14,570

3 $18,310

4 $22,050

5 $25,790

6 $29,530

7 $33,270

8 $37,010For families with more than 8 persons, add $3,740 for each additional person.

FEDERAL POVERTY LEVELS 2010

Persons in family 100% FPL

150% FPL

200% FPL

300% FPL

1 $10,830 $16,245 $21,660 $32,490

2 $14,570 $21,855 $29,140 $43,710

3 $18,310 $27,465 $36,620 $54,930

4 $22,050 $33,075 $44,100 $66,150

5 $25,790 $38,685 $51,580 $77,370

6 $29,530 $44,295 $59,060 $88,590

7 $33,270 $49,905 $66,540 $99,810

8 $37,010 $55,515 $74,020 $111,030

Each additional person $3,740 $5,610 $7,480 $11,220

FPL AND MEDIAN INCOME, MASSACHUSETTS 2009/2010

Family size

100% FPL

200% FPL

300% FPL

State median income

1 $10,830 $21,660 $32,490 $54,842

2 $14,570 $29,140 $43,710 $66,437

3 $18,310 $36,620 $54,930 $83,104

4 $22,050 $44,100 $66,150 $100,280

WHAT IS THE ECONOMIC INDEPENDENCE INDEX? Measure of income adequacy

Takes into account costs of living differences family size and composition age of children community variations in costs of housing and childcare

Measures categories of costs independently recognizes that families spend greater share of

income on housing and childcare than food cost Includes costs associated with working Includes impact of taxes and tax credits

ASSUMPTIONS OF ECONOMIC INDEPENDENCE INDEX Employment - all adults work full-time

Child care - uses rates from Child Care Resource and Referral Agencies, adjusted for age of child

Transportation - use public transportation in cities, car ownership in other areas

Housing rents- set at 40th%ile of market rate

Food - low cost food plan, no allowance for take-out, fast food, restaurant meals

Health Care - responsible for 30% of health insurance premium ($9,600/year)

http://www.liveworkthrive.org/site/assets/docs/Mass_Index_Methodology_030810.pdf